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"If you're going to panic, do it fast and beat the crowd." ~ Jesse Livermore

Saturday, August 13, 2011

Leveraged Loans Lose as Europe's Financial Crisis Intensifies

Leveraged Loans Lose as Europe's Financial Crisis Intensifies
BusinessWeek
Total yearly returns on the S&P/LSTA US Leveraged Loan 100 Index, which tracks the 100 largestdollar-denominated first-lien leveraged loans, plunged to negative 4.4 percent yesterday, down from positive 2 percent at the beginning of the month, ...

Whither the economy in this season of contagion?
The New Age Online
In a case of once bitten twice shy, leaders across the world, are responding to the US and Euroregion market jitters with remarkable vigilance. This is because the memories of the 2008 US originated global economic meltdown remain fresh. ...

FOREX-Euro inches up as stocks rally, Swiss falls
Reuters... although persistent worries about debt contagion checked gains. The safe-haven Swiss franc dropped in choppy trade, after posting record one-day falls against the euro and dollar on Thursday when rising rhetoric by the Swiss central bank weighed on ...

This Time, US Fears a Financial Crisis From Abroad
ABC News
Should Italy or Spain default, European banks that hold their bonds would suffer. Wall Street's fear is that the contagion would imperil US banks that do business with those European banks. French banks, with huge amounts of Italian and Greek ...

Predicting the trajectory of the financial crisis
Livemint... on the country if it has borrowed heavily in foreign currency. The authors argue that typically government debts rise about 86% in the three years following a crisis, “setting the stage for rating downgrades and, in the worst scenario, default”.

Credit Crisis 2011 Compared to Credit Crisis 2008
ETFguide
In September 2008, the markets were in sharp decline because of a bank-centered financial crisis. The authorities took action with bailouts and by buying bonds to prop up the market. Short selling of financial stocks was banned in order to stabilize ...

Media's malaise reflects financial crisis
Asia Times Online
Suspicions that the "almighty dollar" is no longer the bellwether currency are rife. The spreading malaise through Europe and Asia means that business and industry will go on slowing down. Even if the US economy picks up temporarily, ...

The Purple Crayon Guide to the Financial Crisis
Yahoo! Finance (blog)
By Jeff Macke By Jeff Macke | Breakout – 6 hours ago Everyone is discussing recent market volatility and the looming global financial crisis. Unfortunately, most of the conversations are misinformed. Not to worry, I'm here to help. ...

We can't always count on China
The Australian
IT'S not much use looking to China to be the good Samaritan once again and provide the economic comfort and support it did during the global financial crisis and the earlier Asian contagion crisis. It wasn't good economic management by the Rudd ...

'Thank God that Turkey is not in the eurozone,' economic expert says
Hurriyet Daily News
Turkey's having not thus far joined the euro has helped save it from the financial crisiswreaking havoc in many developed economies, according to veteran financial journalist Göngör Uras. The country's economy has been doing relatively well because ...

Factbox: Europe's path to approving strengthened bailout fund
Reuters
(Reuters) - Euro zone countries have pledged to win swift parliamentary approval for a July 21 deal to widen the powers of their bailout fund to help member states in difficulty and fight financial marketcontagion. The agreement will allow the ...

Europe Has Two Choices: Amputation or Gangrene
Wall Street Pit
The amputation option is to jettison the Euro project by lopping off the weak Med countries, and letting them respond to fiscal crisis in the old fashioned way, through a currency devaluation that would permit these countries to become more competitive ...

Europe Needs A Federal Budget
Business Insider
What is the best way for the EU to thwart sovereign debt contagion to weaker eurozone states? If Europe is not able to go forward with the creation of a federation, it's clear that the euro will disappear and collapse. And when the Soviet Union ...

Excessive Welfare Policies Result in Financial Crisis
Arirang News
The ruling Democratic Party of Japan plans to either scrap or revise the four major welfare policies it pledged during its election campaign two years ago. This is in exchange for obtaining consent from opposition parties on issuing public bonds, ...

Budget crisis prompts Clark sheriff to release 40 from jail
Louisville Courier-Journal
Those are some of the implications of the fiscal crisis facing Clark County government, which this week asked its 18 departments to file plans, to show how they are complying with budget cuts the county council made in March. ...

Become Self-Sufficient to Survive the Financial Crisis
PlanetSave.com
The talk on the streets is that there is a coming financial crisis, and one that will drastically alter the way we all go about our daily lives. It matters very little if you believe in this coming wreckage or not, as the most important part of this ..

Barchart Morning Call
Inside Futures
Bullish factors included (1) increased safe-haven demand for the dollar on concern of contagion in the European debt crisis after credit default swaps to insure the government debt of Italy and France rose to records and (2) the unexpected decline in ...

Little room for the federal government to move this time around
The Australian... it was pre-global financial crisis. "Not in mining, where so many projects that could have been delayed are now under construction, but in areas like consumer spending," he says. And he's not that happy to see our dollar still sitting above parity. ...

Dow finishes wild week on a high note
NDTV.com
The sentiment survey was taken over the past 10 days, as Americans watched the markets leap and dive on news about Europe's spreading financial crisis, the first-ever downgrade of the USs long-term credit rating, signals that the job market improved ...

The outlook for European markets after rocky ride
Investment Week
In this week's debate, the panel discussed the crisis facing the eurozone, the threat ofcontagion to the strongest economies in the region, and which sectors of the market still offer attractive opportunities for investors. ...

Someone Tripped
Outlook
Though there's no immediate financial crisis in the West, economists contend the problem is a lack of socio-political confidence. “I see it as Stage 2 of the global financial crisis as it is not a new problem but an extension of the first crisis,” says ...

MONEY MARKETS-Stress keeps dollar funding costs at 4-mth highs
Reuters
This shows "how worried the market is about contagion risk and that's not something that can easily be fixed," she added. The cost of insuring French debt against default was at 147 basis points, up from 108 basis points in early January. ...

Mexico's Peso Edges Lower Vs Dollar In Quiet End To Rough Week
Wall Street Journal
Credit Suisse said Thursday that the peso remains among its favorite emerging market currencies, and that contagion fears and crowded positioning were the likely causes of the recent volatility in the peso, as well as Brazil's real and the Chilean ...

Investor Protections Beefed Up in Latest CMBS Offer
Wall Street Journal
By ALBERT YOON Deutsche Bank AG and UBS AG broke the mold for commercial mortgage-backed securities this week as they offered the best investor protections since the financial crisis unfolded, and will likely do more of such deals to appease the market ...

Tombini: Brazil Prepared For '2nd Phase' Of Global Crisis
Wall Street Journal
SAO PAULO (Dow Jones) -- Brazil's central bank and government are prepared for the "second phase" of a global financial crisis that began in 2008, Central Bank President Alexandre Tombini said Friday. Speaking at a seminar on financial stability and ...

'The End Of The Line For The Euro'
NPR (blog)
On Wednesday, amid these rumors, stock in Societe General dropped 15 percent — the largest fall since the 2008 financial crisis. The bank went started looking for the source of these rumors, and the trail led back to London. Last Sunday, the British ...

As markets churn, investors reach for ETFs
Financial News
The dynamic echoes a similar spike in trading volumes in October 2008, during the darkest days of the financial crisis and at other volatile moments since. Because ETF fund firms never know exactly who is trading the funds, it is difficult to know ...

The "Real" Consumer Remains in a Recession
Business Insider
The Financial Crisis of 2008 has had a major impact. After the cliff-dive of the Great Recession, the recovery in retail sales has taken us (in nominal terms) 3.2% above November 2007 pre-recession peak. Below, is the same chart with two trendlines ...

Is Market Volatility Here to Stay?
TIME (blog)
On Monday, the VIX – a measure of the implied volatility in the stock market – shot up to its highest level since the depths of the 2008-09 financial crisis, up 50% to 48. Tuesday it dropped 27%, the biggest one-day drop in history. Wednesday? ...

Lone Star aims to sell Tokyo property for $1.3 bln-sources
Reuters
The size of the deal is significant as Japan's real estate market remains stagnant, having yet to recover from the slump caused by the global financial crisis in 2008. But while Tokyo's real estate market remains slow with a price gap between sellers ...

How investors can handle the market's turmoil
MarketWatch
Clearly the investing public has passed the point of denial — there is no way to minimize the governmental, societal and economic problems that have created the latest worldwide financial crisis — but is not yet at the point of capitulation, ...

Lower Oil Price Helps Consumers But Market Volatility Remains
The Lincoln Tribune
In recent months, crude oil prices have experienced their sharpest drop since the 2008 financial crisis, and now stand at around $80 a barrel. Alongside one of the main highways leading into the US capital, a European tourist is filling up his rental ...

Market chaos raises concerns for private equity
Reuters
Private equity firms, which make leveraged investments in companies in hopes of selling them relatively quickly to other companies or to the public, have been playing a much longer waiting game than anticipated since the 2008 financial crisis. .

Dividend Stocks on the Cheap?
TheStreet.com
The last time it happened was during the financial crisis. The S&P yielded more than Treasuries for a couple of days near the market trough, and then stocks went straight up, Walsh says. Walsh concedes that stocks may not spike immediately, ...